Daily Rare Coin Update
December 15, 2009 - Rare coin values remained flat this morning, after precious metal spot prices were repressed due to the strengthening of the US dollar. Since 2001, rare coin values have been led upward by booming gold and silver spot prices. The Professional Coin Grading Service (PCGS) will soon update their price guide, which can be found at www.PCGS.com and lists the national average retail prices for a wide range of collector and investment-grade pieces.
In the last few years, our nation’s devolving economy has created a firestorm of precious metal buying, both in the bullion and rare coin departments. As a general rule, successful precious metal investors utilize bullion bars and coins for holds of 1-14 months, and longer-term investors usually see better results with investment-grade rare coins.
Gold and silver bullion is a better fit for short-term investors because the low markup on these products permits investors to see profits quickly if spot values rise quickly. Bullion is not an advisable purchase for investors who plan on holding their metal longer than 14 months because the minute fluctuations of spot prices (as witnessed today) keep bullion from consistently gaining value.
Additionally, bullion could be seized by the US government if the dollar loses more value against a basket of international currencies, as has been the trend as of late. Historically, our government confiscated the gold bullion within US borders to pay down our national debt and strengthen our dollar. Long-term investors may do better financially with rare coins that have been classified as “Mint State Uncirculated” rarities by PCGS, because these coins track the trend of the gold spot price and the purchase of these coins is done in a completely private manner.
PCGS-certified rare coins have been deemed non-confiscatable assets by our government’s own rules, so another bullion seizure would most likely not include a recall of historical rarities. These types of coins are meant for private collectors, so investors corner this part of the market to protect and grow their wealth over a period of years and decades. To get live quotes on bullion and rare coin values, contact Rare-Coin.org or just register below for our free investment tutorial and discounted pricing.
Shawn Penny
Senior Staff Writer - Rare-Coin.org
